PDD Holdings Valuation

Is PDD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PDD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PDD ($117.31) is trading below our estimate of fair value ($457.01)

Significantly Below Fair Value: PDD is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for PDD?

Key metric: As PDD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PDD. This is calculated by dividing PDD's market cap by their current earnings.
What is PDD's PE Ratio?
PE Ratio11.9x
EarningsCN¥98.82b
Market CapCN¥1.14t

Price to Earnings Ratio vs Peers

How does PDD's PE Ratio compare to its peers?

The above table shows the PE ratio for PDD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.5x
MELI MercadoLibre
67.6x28.0%US$95.3b
BABA Alibaba Group Holding
17.1x15.1%US$201.5b
CPNG Coupang
42.5x30.1%US$44.0b
JD JD.com
10.6x8.2%US$50.7b
PDD PDD Holdings
11.9x17.4%US$158.3b

Price-To-Earnings vs Peers: PDD is good value based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (34.5x).


Price to Earnings Ratio vs Industry

How does PDD's PE Ratio compare vs other companies in the North American Multiline Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
PDD 11.9xIndustry Avg. 19.6xNo. of Companies3PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PDD is good value based on its Price-To-Earnings Ratio (11.9x) compared to the Global Multiline Retail industry average (19.6x).


Price to Earnings Ratio vs Fair Ratio

What is PDD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PDD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.9x
Fair PE Ratio32x

Price-To-Earnings vs Fair Ratio: PDD is good value based on its Price-To-Earnings Ratio (11.9x) compared to the estimated Fair Price-To-Earnings Ratio (32x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies